Chit Chat

[karn]

We have been asked to avoid foreign FoF's(fund of funds), avoid small-cap exposure of more than 10%, expect a Large-cap sell-off triggering circuit breakers, expect a drawdown of up to 60%, but no government response or measure was explained.

And they told us to expect volatility for a long term(>1 year).

A few more things were discussed, VARs were calculated, and larger fund houses had a separate meeting with SEBI people. Don't know what they discussed.

Yikes .. So should retail investors just exit the market now ? It will be as bad a covid wont it.

 

[Aditya10r]

Yikes .. So should retail investors just exit the market now ? It will be as bad a covid wont it.

Well, COVID drawdowns were just 30-35%, but it was followed by a massive rally. We are preparing well in advance, so things might not be as bad as they might seem. Also Stock market is not the economy of India; our economy is very robust and less susceptible to global shocks. Just look at our increasing energy consumption or double-digit growth in tax collection despite tax breaks. Retail investors could balance their portfolio not because of this incident, but because it is a good idea in general.